Kyndryl Holdings Inc (KD)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	29.94	27.24	28.10	29.30
Days of sales outstanding (DSO)	days	—	36.36	32.65	44.59	27.24
Number of days of payables	days	—	38.97	44.66	25.14	19.57
Cash conversion cycle	days	0.00	27.34	15.23	47.54	36.97

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Kyndryl Holdings Inc has shown fluctuations over the years based on the provided data.

- As of March 31, 2021, the cash conversion cycle stood at 36.97 days, indicating that the company took approximately 36.97 days to convert its investments in inventory and other resources into cash.
- By March 31, 2022, the cash conversion cycle increased to 47.54 days, suggesting a longer period required to convert investments into cash.
- The cycle significantly decreased to 15.23 days as of March 31, 2023, indicating a more efficient conversion of investments into cash during that period.
- Subsequently, by March 31, 2024, the cycle increased to 27.34 days, signifying a longer period required to complete the cash conversion process.
- Interestingly, as of March 31, 2025, the cash conversion cycle became 0.00 days, which may be indicative of an exceptionally efficient cash conversion process, where cash is received before investments are made in inventory and other resources.

Overall, the cash conversion cycle trend of Kyndryl Holdings Inc shows variability over the years, with some periods reflecting efficiency in cash management and others indicating longer cash conversion cycles. It is essential for the company to analyze the underlying reasons for these fluctuations to maintain optimal cash flow management.